Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  
 

3.3.3 2012 Stakeholder Engagement

Investors

Issue Stakeholders Location Frequency of
engagement
Response during 2012 Relevant
sections
in the
Integrated
Annual
Review
2012
Demand for greater leverage against gold price All investors Global Weekly/ monthly
engagement
Strategic Portfolio Review resulting in the unbundling of Sibanye Gold
Operational Portfolio Review resulting in cessation of marginal production activities
Focus on cash-based KPIs over ounces produced
Avoidance of marginal growth projects and implementation of stringent financial stage-gates
Ongoing investment in Group Technical Services to optimise mining performance
Ongoing investment in more efficient gold processing technology/facilities
Prioritisation of delivery of free cash flow to investors in the form of dividends
1.3
1.5
2.2.3
3.1.4
3.1.6
5.1
6.1
Growth of cash-generative production volumes (including South Deep ramp-up) All investors Global, South Africa Weekly/ monthly engagement
Completion of all major mine infrastructure to support South Deep’s future run-rate
New ’24/7’ operating model at South Deep to maximise productivity, incentivise employees and support production ramp-up
Pursuit of high-quality greenfields exploration in established Regions and new, underexplored prospective areas
Establishment of Growth and Exploration division Sustainable Development function to ensure competitive advantage in challenging new growth environment
1.3.2
1.5
2.2.3
3.1.4
5.1.3
5.1.4
5.1.5
6.1
Optimisation of capital expenditure All investors Global Weekly/ monthly engagement
Measurement and monitoring of true, all-in cost through the use of Notional Cash Expenditure (NCE)
Integration of stringent financial stage-gates throughout the growth pipeline to ensure superior returns
Re-scoping of development at the Chucapaca growth project
Suspension of development work at the Far Southeast growth project – pending conclusion of stakeholder relations efforts and regulatory clarity
1.5
2.2.3
3.1.4
6.1
6.3
Leveraging of balance sheet All investors Global Weekly/ monthly engagement
Focus on maintenance of strong liquidity and improvement of our debt maturity profile
Maintenance of a conservative debt maturity schedule
1.6
Perceptions of deteriorating operating environment in South Africa All investors South Africa Weekly/ monthly
engagement
Unbundling of new Sibanye Gold for more focused management of related issues linked to labour-intensive, deep underground mines
Engagement with organised labour, government, employees and peers to establish a new, fit for purpose labour relations model
Ongoing and new efforts to address broader transformation within the South African mining industry, including through Social Labour Plans
1.3
1.5
2.2.3
3.1.1
5.1.5
7.1.5
Concern over the long-term profitability of mature, deep underground mines in South Africa All investors South Africa Monthly engagement
Separation of new Gold Fields and Sibanye Gold to allow for more focused management
Pursuit of Surface Treatment Strategy to leverage South African surface assets and reduce environmental liabilit
Ongoing operational efficiency measures at Beatrix and KDC
1.3
3.1.1
3.1.4
5.1.3
5.1.6
5.1.7
5.2.1
7.1.5
Impact of significant illegal strikes at KDC and Beatrix All investors South Africa Weekly engagement
Application of responsible and effective security practices to ensure resolution of Beatrix and KDC strikes without serious violence
Engagement with employees, unions and government to resolve the strikes – including acceleration of planned wage increase
Maintenance of the integrity of existing, twoyear Collective Wage Agreement – pending resolution of future labour arrangements
2.2.2
3.1.1
5.1.1
5.1.2
7.1.5
7.3.3
Impact of major underground fire at KDC’s Ya Rona shaft All investors South Africa Weekly
engagement
Ongoing efforts to establish causes of accident and implement recommendations
2.2.2
5.1.1
5.1.2
5.2
Impact of Section 54 safety stoppages in South Africa All investors South Africa Monthly
engagement
Ongoing pursuit of Zero Harm (see relevant section under Employees stakeholder table)
1.3.3
5.1.1
5.1.2
5.2
Impact on production of temporary suspension of our heap leach facilities at Tarkwa All investors Ghana Monthly
engagement
Securing of a lifting of the suspension in August 2012 and approval for continued dilution and discharge (on a temporary basis)
Installation of two new water treatment plants in early 2013 and resumption of heap leach activity
5.1.1
5.1.2
5.3.2
Delivery of major new growth projects All investors Global Quarterly
engagem
Fast tracking of the Yanfolila project in Mali towards a 2013 development decision, following a doubling in resources
Extensive engagement activity at the Far Southeast growth project in the Philippines to ensure a strong/stable licence to operate
1.3.2
2.2.3
3.1.5
6.1
6.3

Employees

Issue Stakeholders Location Frequency of
engagement
Response during 2012 Relevant
sections
in the
Integrated
Annual
Review
2012
Ongoing pursuit of Zero Harm Mine employees Global, South Africa Daily
Enhanced Safety Strategy in South Africa, including renewed focus on cultural transformation and stakeholder engagement
Close, proactive management of a safe return to work following illegal strikes in South Africa
Enhanced safety incentives, including piloting of new monthly safety bonus system at KDC
Extensive safety engineering programme, including focus on reducing fall of ground
1.4
1.5
2.2.2
3.2.2
3.2.3
5.2
6.1.4
Responsible management of occupational health and employee wellbeing Mine employees Global, South Africa Daily
Engineering-out of health risks, including the installation of tip filters, mist sprays, settling agents and improved dust measurement
Implementation of programme to improve the effectiveness of Personal Protective Equipment in South Africa
Implementation of programme to manage employee exposure to diesel particulates
As above
7.1.4
The addressing of potential legal claims relating to silicosis in the South African mining sector Veteran employees, Ex-employees South Africa As required
Detailed preparation to determine potential litigation and liability – including consolidation of historical data
2.2.2
3.2.3
7.1.4
Management of HIV/AIDS and Tuberculosis within the workforce Employees South Africa Daily treatment, annual testing
Ongoing awareness raising, Voluntary Counselling and Testing, provision of Highly Active Retroviral Treatment and broader social/medical support
Launch of a broader, holistic HIV/AIDS and Tuberculosis initiative examining collaboration with industry peers and the extension of programmes to labour-sending areas
Introduction of advanced GeneXpert testing technology for Tuberculosis detection
7.1.4
Effective management of internal and external crisis situations Employees Global Quarterly review, annual testin
Implementation of Group-wide crisis management programme, ’semi-live’ exercises and application during illegal strikes at Beatrix and KDC and the serious fire at KDC’s Ya Rona shaft
2.2.2
3.1.1
5.2.1
6.1.4
7.1.5
7.3.3
Provision of competitive salaries, working conditions and benefits Specialist employees, Managers Global Quarterly briefing of top-talent, annual survey
Regular surveys to ensure remuneration remains competitive in each market we operate in
Offering of an integrated, holistic employee value proposition, tailored to individual needs where possible
Delivery of high-quality education, training and development opportunities
3.1.3
7.1.2
Provision of competitive training and development opportunities Managers and employees Global Employees receive two weeks a year of on-the-job training
Ongoing application of centralised and regional leadership development programmes
On-site operational training in South Africa, South America and West Africa
Provision of university bursaries in our South Africa, South America and West Africa regions
Development of world-class, high-technology training facilities at South Deep to support deep underground, mechanised mi
3.1.3
7.1.2
Enhancement of employee accomodation/ living arrangements Junior employees South Africa Weekly tenant meetings
Upgrading of single men’s accomodation and the ongoing delivery of family accomodation units – in line with our Mining Charter commitments
Initiative to help improve conditions for those employees who opt to ’live-out’ in informal settlements
7.1.4
7.3.2
Increased fiscal burden on extractive companies Government Ghana Regular direct and indirect engagement with government
Submission of draft, Gold Fields-specific Stability Agreement to the Government of Ghana to ensure a stable platform for future investment in the country
Development/advocacy of draft, sector-wide Stability Agreement to ensure level playing field for all operators
Engagement with the government to find correct balance between increasing mining revenues and ensuring that future investment in the Ghanaian extractive industry remains commercially justifiable
2.2.2
3.1.2
7.3.2
Employment of local citizens, community members and/or Historically Disadvantaged South Africans (HDSAs) Governments, local citizens, local communities Ghana, Peru, South Africa Weekly/ monthly/ quarterly assessment
Compliance with relevent quotas relating to the employment of nationals/Historically Disadvantaged South Africans (HDSAs)
Ongoing application of community recruitment processes and structures in Ghan
Ongoing, targeted employment, training and development of local community members in Peru
Ongoing, targeted employment, training and development of HDSAs in South Africa
7.1.1
7.1.2
7.1.3
7.2.1
Sourcing of local and/or Black Economic Empowerment (BEE) goods and services Local/ HDSAcontrolled businesses Ghana, Peru and South Africa As required
Compliance with relevant terms of the Mining Charter and other relevant BEE legislat
Application (where practicable) of preferential procurement in Ghana, Peru and South Africa
Active engagement and joint ventures with local suppliers to improve their business, management and production standards
Development of database of suppliers in South Africa
7.2.3
Water scarcity and quality Regulators, local communities Australia, Ghana, Peru and South Africa Daily monitoring, weekly jointcommunity monitoring
Introduction of new Group-wide Water Strategy to ensure strong, common practice across all regions
Ongoing implementation of Liquid Gold project in South Africa to address potential Acid Mine Drainage and other water-related risks
Joint water monitoring with community members at Cerro Corona and Tarkwa
Installation of two high-value water treatment plants at Tarkwa’s heap leach facilities
2.2.3
8.3.2
7.2.5
Carbon emissions and climate change impacts Governments, society Global Six-monthly government briefings
Implementation of new, integrated Energy and Carbon Management Strategy across the Group
Ongoing investigation into renewable energy opportunities, including a biomass energy plant at Tarkwa, a waste and biomass energy plant at KDC and wind-power at St Ives
Ongoing operation of the Beatrix Methane Project and the generation of Certified Emission Reductions
Energy efficiency measures at our South African operations
Minimum requirement of 20% renewables for greenfields projects
5.1.6
5.3.3
Contributions to local socioeconomic development Local government, Local communities Global Monthly meetings with local communities
Implementation of the shared value concept to ensure alignment of operational and strategic interests with local communities
Ongoing Socio-Economic Development contributions (via ’per ounce’ payments to the Gold Fields Ghana Foundation)
Ongoing initiatives to enhance local infrastructure, education and training, health and wellbeing, and economic diversification
2.2.3
3.1.2
6.1
7.2
Meaningful consultation on matters affecting local communities Local communities Global Weekly/ monthly/ quarterly meetings
Engagement on issues around heritage issues, native title and land access with indigenous groups at Agnew, St Ives and Far Southeast – and also in relation to our exploration activities in Canada
Extensive, multi-layered stakeholder engagement frameworks at Damang and Tarkwa
Regulated engagement activities through our Social and Labour Plans at Beatrix, KDC and South Deep
The establishment of new Community Engagement Forums at South Deep
Ongoing implementation of formal engagement framework at Cerro Corona – and participation in the ’Mesa de Dialogo y Concertacion de Hualgayoc’ multistakeholder forum
2.2.3
6.1
6.3
7.2.5
Transformation of the mining industry National government, Regulators, Society, Employees South Africa Six-monthly SLP meetings with government, weekly meetings with employees on training, operating and wellness issue
Ongoing strengthening of the ’empowerment pipeline’ through the education, training and development of our HDSA employees – including targeted Adult Basic Education and Training programmes
Ongoing construction of family accomodation, the upgrading of single person hostels and the promotion of home ownership (on advantageous terms) amongst our employees
Efforts to improve living conditions amongst that portion of our workforce that opts to ’live-out’ in informal settlements
Promotion of socio-economic development in labour-sending areas
Implementation of the new operating model at South Deep, offering greater potential take home pay
Exploration of new career structures for junior personnel
3.1.1
7.1.3
7.1.4
7.1.5
7.2
Securing of people and assets without compromising the human rights of others National government, Society, Local communities, Employees, Consumers Ghana, South Africa Quarterly meetings with external security providers
Resolution of illegal strikes at Beatrix and KDC without serious injury
Human rights training for Gold Fields Protection Services (GFPS) personnel
Ongoing liaison with local security forces
Adherence to the International Code of Conduct for Private Security Service Providers by GFPS
2.2.2
3.1.1
3.2.3
7.1.5
7.3.3
Support for international efforts to exclude conflict-related gold from the legitimate global gold trad Society, Consume Global Ongoing, monthly WGC meetings
Voluntarily adoption of the World Gold Council’s (WGC) Conflict-Free Gold Standard, despite not producing gold in any conflictaffected countries
Pilot application of the Standard by external and internal experts at all of our eligible operations (building on similar exercises at Damang and Tarkwa in 2011) to assess our readiness to conform with the standar
4.1.2
7.3.3

Society

Issue Stakeholders Location Frequency of
engagement
Response during 2012 Relevant
sections
in the
Integrated
Annual
Review
2012
Increased fiscal burden on extractive companies Government Ghana Regular direct and indirect engagement with government
Submission of draft, Gold Fields-specific Stability Agreement to the Government of Ghana to ensure a stable platform for future investment in the country
Development/advocacy of draft, sector-wide Stability Agreement to ensure level playing field for all operators
Engagement with the government to find correct balance between increasing mining revenues and ensuring that future investment in the Ghanaian extractive industry remains commercially justifiable
2.2.2
3.1.2
7.3.2
Employment of local citizens, community members and/or Historically Disadvantaged South Africans (HDSAs) Governments, local citizens, local communities Ghana, Peru, South Africa Weekly/ monthly/ quarterly assessment
Compliance with relevent quotas relating to the employment of nationals/Historically Disadvantaged South Africans (HDSAs)
Ongoing application of community recruitment processes and structures in Ghan
Ongoing, targeted employment, training and development of local community members in Peru
Ongoing, targeted employment, training and development of HDSAs in South Africa
7.1.1
7.1.2
7.1.3
7.2.1
Sourcing of local and/or Black Economic Empowerment (BEE) goods and services Local/ HDSAcontrolled businesses Ghana, Peru and South Africa As required
Compliance with relevant terms of the Mining Charter and other relevant BEE legislat
Application (where practicable) of preferential procurement in Ghana, Peru and South Africa
Active engagement and joint ventures with local suppliers to improve their business, management and production standards
Development of database of suppliers in South Africa
7.2.3
Water scarcity and quality Regulators, local communities Australia, Ghana, Peru and South Africa Daily monitoring, weekly jointcommunity monitoring
Introduction of new Group-wide Water Strategy to ensure strong, common practice across all regions
Ongoing implementation of Liquid Gold project in South Africa to address potential Acid Mine Drainage and other water-related risks
Joint water monitoring with community members at Cerro Corona and Tarkwa
Installation of two high-value water treatment plants at Tarkwa’s heap leach facilities
2.2.3
8.3.2
7.2.5
Carbon emissions and climate change impacts Governments, society Global Six-monthly government briefings
Implementation of new, integrated Energy and Carbon Management Strategy across the Group
Ongoing investigation into renewable energy opportunities, including a biomass energy plant at Tarkwa, a waste and biomass energy plant at KDC and wind-power at St Ives
Ongoing operation of the Beatrix Methane Project and the generation of Certified Emission Reductions
Energy efficiency measures at our South African operations
Minimum requirement of 20% renewables for greenfields projects
5.1.6
5.3.3
Contributions to local socioeconomic development Local government, Local communities Global Monthly meetings with local communities
Implementation of the shared value concept to ensure alignment of operational and strategic interests with local communities
Ongoing Socio-Economic Development contributions (via ’per ounce’ payments to the Gold Fields Ghana Foundation)
Ongoing initiatives to enhance local infrastructure, education and training, health and wellbeing, and economic diversification
2.2.3
3.1.2
6.1
7.2
Meaningful consultation on matters affecting local communities Local communities Global Weekly/ monthly/ quarterly meetings
Engagement on issues around heritage issues, native title and land access with indigenous groups at Agnew, St Ives and Far Southeast – and also in relation to our exploration activities in Canada
Extensive, multi-layered stakeholder engagement frameworks at Damang and Tarkwa
Regulated engagement activities through our Social and Labour Plans at Beatrix, KDC and South Deep
The establishment of new Community Engagement Forums at South Deep
Ongoing implementation of formal engagement framework at Cerro Corona – and participation in the ’Mesa de Dialogo y Concertacion de Hualgayoc’ multistakeholder forum
2.2.3
6.1
6.3
7.2.5
Transformation of the mining industry National government, Regulators, Society, Employees South Africa Six-monthly SLP meetings with government, weekly meetings with employees on training, operating and wellness issue
Ongoing strengthening of the ’empowerment pipeline’ through the education, training and development of our HDSA employees – including targeted Adult Basic Education and Training programmes
Ongoing construction of family accomodation, the upgrading of single person hostels and the promotion of home ownership (on advantageous terms) amongst our employees
Efforts to improve living conditions amongst that portion of our workforce that opts to ’live-out’ in informal settlements
Promotion of socio-economic development in labour-sending areas
Implementation of the new operating model at South Deep, offering greater potential take home pay
Exploration of new career structures for junior personnel
3.1.1
7.1.3
7.1.4
7.1.5
7.2
Securing of people and assets without compromising the human rights of others National government, Society, Local communities, Employees, Consumers Ghana, South Africa Quarterly meetings with external security providers
Resolution of illegal strikes at Beatrix and KDC without serious injury
Human rights training for Gold Fields Protection Services (GFPS) personnel
Ongoing liaison with local security forces
Adherence to the International Code of Conduct for Private Security Service Providers by GFPS
2.2.2
3.1.1
3.2.3
7.1.5
7.3.3
Support for international efforts to exclude conflict-related gold from the legitimate global gold trade Society, Consume Global Ongoing, monthly WGC meetings
Voluntarily adoption of the World Gold Council’s (WGC) Conflict-Free Gold Standard, despite not producing gold in any conflictaffected countries
Pilot application of the Standard by external and internal experts at all of our eligible operations (building on similar exercises at Damang and Tarkwa in 2011) to assess our readiness to conform with the standar
4.1.2
7.3.3